A coalition formation game framework for peer-to-peer energy trading

Abstract

This paper studies social cooperation backed peer-to-peer energy trading technique by which prosumers can decide how they can use their batteries opportunistically for participating in the peer-to-peer trading. The objective is to achieve a solution in which the ultimate beneficiaries are the prosumers, i.e., a prosumer-centric solution. To do so, a coalition formation game is designed, which enables a prosumer to compare its benefit of participating in the peer-to-peer trading with and without using its battery and thus, allows the prosumer to form suitable social coalition groups with other similar prosumers in the network for conducting peer-to-peer trading. The properties of the formed coalitions are studied, and it is shown that 1) the coalition structure that stems from the social cooperation between participating prosumers at each time slot is both stable and optimal, and 2) the outcomes of the proposed peerto-peer trading scheme is prosumer-centric. Case studies are conducted based on real household energy usage and solar generation data to highlight how the proposed scheme can benefit prosumers through exhibiting prosumer-centric properties.

Digitization, Digital Twins, Blockchain, and Industry 4.0 as Elements of Management Process in Enterprises in the Energy Sector

“…Blockchain technologies offer innovative solutions that enable consumers, end-users, and small producers of renewable energy to play a more active role in the energy market and maintain liquidity by easily selling assets [19,59]. Recently, many scientific studies have been written on the use of blockchain technology in peer-to-peer networks [60][61][62], energy trade [63,64], and microgrid demand response programs [19,65]. Blockchain can build an open and collaborative data flow system, turn data into mobile assets, and launch various open and integrated business models.…”

Electricity Cost-Sharing in Energy Communities Under Dynamic Pricing and Uncertainty

“…Their interaction is modelled as the canonical coalition game. The social cooperation between prosumers is modelled as a coalition formation game in [12] enabling prosumers to decide should they use battery storage in p2p trading. P2p trading can also be modelled through a bidding process or by way of a gametheory approach.…”

“…• Relevant literature on cost-sharing methods recognizes three main categories: i) game-theory methods which are rather complex to deploy, such as [8], [16], [17], [18], ii) coalition games ( [11], [12], [20]) and iii) postevent methods which guarantee model convergence (such as BSM, MMR, SDR [22], [28], [37]). Game-theory cost-sharing methods are computationally demanding and this complexity increases exponentially with the number of peers.…”

“…2. Unlike papers not considering any kind of flexible behavior [7], [11], [14], [22] or focusing only on battery storage [12], [17]- [18], [21]- [23], [28]- [37], [39], this paper investigates the monetary value of several flexible appliances in terms of cost reduction for all community members. The model analyses the impact of different flexible appliances on electricity cost reduction compared to the case with fixed consumption.…”

Peer-to-Peer Energy Transaction Mechanisms Considering Fairness in Smart Energy Communities

“…Tushar et al discussed various game-and auction-based theoretical approaches to provide an overview of the use of game-theory approaches to P2P energy trading as a feasible and effective means of energy management [19]. They also proposed a canonical coalition game approach for P2P energy trading, in which a set of participating prosumers formed a coalition group to trade their energy with one another and utilized a mid-market rate as a pricing mechanism for the proposed P2P trading [20] [21]. Liu et al designed a Stackelberg game-based energy sharing method for PV prosumers using a feed-in-tariff where the utility acts as the leader and all participating prosumers are considered to be the followers [22].…”